Quarterly report pursuant to Section 13 or 15(d)

OPERATING SEGMENTS (Details)

v3.10.0.1
OPERATING SEGMENTS (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jul. 01, 2018
Jul. 02, 2017
Jul. 01, 2018
Jul. 02, 2017
Operating results:        
Total sales [1] $ 6,132 $ 5,078 $ 11,702 $ 9,667
Research, development and engineering expenses 219 175 429 333
Equity, royalty and interest income from investees 110 98 225 206
Interest income 10 5 17 7
Segment EBITDA 897 764 1,597 1,469
Depreciation and amortization (2) 154 [2] 144 [2] 307 [3] 283 [3]
Less: Interest expense 28 21 52 39
INCOME BEFORE INCOME TAXES 715 599 1,238 1,147
Amortization of Debt Discount (Premium)     1 1
Engine        
Operating results:        
Total sales 2,696 2,307 5,142 4,330
Research, development and engineering expenses 76 63 155 117
Equity, royalty and interest income from investees 67 56 134 128
Interest income 3 2 5 3
Segment EBITDA 362 323 648 596
Depreciation and amortization (2) 47 [2] 46 [2] 96 [3] 90 [3]
Distribution        
Operating results:        
Total sales 1,994 1,722 3,847 3,367
Research, development and engineering expenses 5 4 10 8
Equity, royalty and interest income from investees 11 13 24 24
Interest income 3 1 5 2
Segment EBITDA 145 127 268 257
Depreciation and amortization (2) 27 [2] 31 [2] 54 [3] 61 [3]
Components        
Operating results:        
Total sales 1,887 1,454 3,640 2,798
Research, development and engineering expenses 62 58 124 108
Equity, royalty and interest income from investees 14 15 30 28
Interest income 2 1 3 1
Segment EBITDA 237 228 464 444
Depreciation and amortization (2) 47 [2] 38 [2] 93 [3] 75 [3]
Power Systems        
Operating results:        
Total sales 1,246 1,017 2,320 1,899
Research, development and engineering expenses 60 50 117 100
Equity, royalty and interest income from investees 18 14 37 26
Interest income 2 1 4 1
Segment EBITDA 186 90 328 175
Depreciation and amortization (2) 32 [2] 29 [2] 62 [3] 57 [3]
Electrified Power        
Operating results:        
Total sales 1 0 3 0
Research, development and engineering expenses 16 0 23 0
Equity, royalty and interest income from investees 0 0 0 0
Interest income 0 0 0 0
Segment EBITDA (21) 0 (31) 0
Depreciation and amortization (2) 1 [2]   2 [3]  
Total Segment        
Operating results:        
Total sales 7,824 6,500 14,952 12,394
Research, development and engineering expenses 219 175 429 333
Equity, royalty and interest income from investees 110 98 225 206
Interest income 10 5 17 7
Segment EBITDA 909 768 1,677 1,472
Depreciation and amortization (2) [2] 154 144    
Intersegment Eliminations        
Operating results:        
Total sales (1,692) [4] (1,422) [4] (3,250) [5] (2,727) [5]
Non-segment items        
Operating results:        
Segment EBITDA (12) [4] (4) [4] (80) [5] (3) [5]
External Sales        
Operating results:        
Total sales 6,132 5,078 11,702 9,667
External Sales | Engine        
Operating results:        
Total sales 2,050 1,711 3,863 3,168
External Sales | Distribution        
Operating results:        
Total sales 1,988 1,716 3,835 3,353
External Sales | Components        
Operating results:        
Total sales 1,402 1,064 2,715 2,044
External Sales | Power Systems        
Operating results:        
Total sales 691 587 1,286 1,102
External Sales | Electrified Power        
Operating results:        
Total sales 1 0 3 0
External Sales | Total Segment        
Operating results:        
Total sales 6,132 5,078 11,702 9,667
Intersegment sales | Engine        
Operating results:        
Total sales 646 596 1,279 1,162
Intersegment sales | Distribution        
Operating results:        
Total sales 6 6 12 14
Intersegment sales | Components        
Operating results:        
Total sales 485 390 925 754
Intersegment sales | Power Systems        
Operating results:        
Total sales 555 430 1,034 797
Intersegment sales | Electrified Power        
Operating results:        
Total sales 0 0 0 0
Intersegment sales | Total Segment        
Operating results:        
Total sales 1,692 1,422 3,250 2,727
Intersegment sales | Intersegment Eliminations        
Operating results:        
Total sales $ (1,692) [4] $ (1,422) [4] $ (3,250) [5] $ (2,727) [5]
[1] Includes sales to nonconsolidated equity investees of $340 million and $637 million and $283 million and $550 million for the three and six months ended July 1, 2018 and July 2, 2017, respectively.
[2] Depreciation and amortization, as shown on a segment basis, excludes the amortization of debt discount and deferred costs included in the Condensed Consolidated Statements of Income as interest expense. A portion of depreciation expense is included in "Research, development and engineering expenses" above.
[3] Depreciation and amortization, as shown on a segment basis, excludes the amortization of debt discount and deferred costs included in the Condensed Consolidated Statements of Income as interest expense. The amortization of debt discount and deferred costs was $1 million and $1 million for the six month periods ended July 1, 2018 and July 2, 2017, respectively. A portion of depreciation expense is included in "Research, development and engineering expenses" above.
[4] Includes intersegment sales, intersegment profit in inventory eliminations and unallocated corporate expenses. There were no significant unallocated corporate expenses for the three months ended July 1, 2018 and July 2, 2017.
[5] Includes intersegment sales, intersegment profit in inventory eliminations and unallocated corporate expenses. There were no significant unallocated corporate expenses for the six months ended July 1, 2018 and July 2, 2017.